Explainer: What is a Nominee Account?

Explainer: What is a Nominee Account?
on

A nominee account allows a stockbroker to hold shares on behalf of a client, making buying and selling those shares easier. The investor remains the only beneficial owner of the shares.

This may be a way for the investor to make it more difficult for anyone to find out how many shares he/she owns in a company since the name of the investor does not appear on the company’s register of shareholders.

It also allows investors to own shares without being involved with any of the paperwork.

The stockbroker is also able to move or sell shares from the nominee account at any time, a mechanism that enables fraud as regulators are not able to check on nominee accounts holdings daily.


Read DeSmog UK‘s Empire Oil series:

Part One – Black Gold’: London’s African Oil Hub

Part Two – Taking AIM: London’s Wild West Stock Market

Part Three – Exposed: The Elite ‘Boys Club’ Running London’s Opaque Oil Network


Image Credit: Ken Teegardin/Flickr/CC BYSA 2.0

Get Weekly News Updates

Related Posts

on

The project will result in an estimated 34 million tons of extra CO2 per year, topping the annual emissions of Uganda and Tanzania combined.

The project will result in an estimated 34 million tons of extra CO2 per year, topping the annual emissions of Uganda and Tanzania combined.
on

The petroleum company is under investigation for misleading the public while exacerbating the global plastic pollution crisis.

The petroleum company is under investigation for misleading the public while exacerbating the global plastic pollution crisis.
Analysis
on

Industries make green claims while lobbying against climate targets and promoting high-carbon travel.

Industries make green claims while lobbying against climate targets and promoting high-carbon travel.
on

CalPERS and CalSTRS, which oppose fossil fuel divestment legislation, have “wildly exaggerated” divestment costs, according to Fossil Free California’s latest report.

CalPERS and CalSTRS, which oppose fossil fuel divestment legislation, have “wildly exaggerated” divestment costs, according to Fossil Free California’s latest report.